![State plans early payoff of Fed loans State plans early payoff of Fed loans](https://southwestregionalpublishing.com/wp-content/uploads/2021/05/img-GREG-HARRIS-0607-FjjXNS-1024x682.jpeg)
State plans early payoff of Fed loans
By PETER HANCOCK
Capitol News Illinois
phancock@capitolnewsillinois.com
SPRINGFIELD – Gov. JB Pritzker and other Democratic leaders announced Thursday that they have agreed to a plan to repay the money Illinois borrowed from the Federal Reserve during the COVID-19 pandemic before the end of the next fiscal year.
Illinois borrowed $3.2 billion from the Fed through a program that Congress established under the Coronavirus Aid, Relief and Economic Security, or CARES Act to help states that saw dramatic declines in revenue during the peak of the pandemic. Of that, roughly $2 billion remains outstanding.
That money was to be repaid in three installments by December 2023. But in a news release, Pritzker said the state’s recent economic performance and stronger-than-expected revenue growth will allow it to pay off the loan early, saving the state about $100 million in interest charges.
“Repaying the federal government is an important step in our efforts to ensure the state remains on sound fiscal footing,” Pritzker said in a statement released Thursday afternoon. “The General Assembly has been a critical partner in utilizing the federal dollars to help the most vulnerable get through the pandemic. I also credit the Comptroller in strategically managing cash flow in these trying times.”
But even without the debt repayment cost, Illinois faces a number of significant fiscal challenges over the next year.
During a news conference earlier in the day, House Majority Leader Greg Harris, D-Chicago, said the proposed budget as it stands now is about $1.3 billion out of balance and that lawmakers are faced with a choice of spending cuts, revenue enhancements or a combination of both in order to get through the year.
Last week, the Governor’s Office of Management and Budget revised its revenue estimates for the current fiscal year upwards by nearly $1.5 billion and by $842 million for the upcoming fiscal year.
Pritzker attributed that improved performance to state programs during the pandemic that targeted sectors of the economy such as small businesses and child care providers, as well as effective cash management by Comptroller Susana Mendoza.
The statement from the governor’s office noted that final income tax payments received earlier this week, along with stronger year-to-date receipts in the state’s main revenue sources – individual and corporate income taxes and sales taxes – will allow the remainder of the repayment to occur beginning in the next several months.
Earlier, officials had hoped to use a portion of the $8.1 billion in fiscal relief Illinois will receive through the recently-passed American Rescue Plan to pay off the loans, but the Treasury Department has issued interim rules that prohibit the use of those funds to pay off state debt.
“So we’ve been working very hard with the governor and the Senate to devise a plan to make our full repayments using state resources,” Harris said. “So I think that’s very important that we’re meeting all of our obligations, and we’re going to get that done and we’re going to figure out then how to balance our operating budgets as well.”
House Speaker Emanuel “Chris” Welch, D-Hillside, said in the statement that lawmakers would continue to work with the governor’s office to establish a “targeted spending plan” for the federal relief funds to address issues such as affordable housing, community-based mental health and substance abuse services and upgrades to hospitals serving areas disproportionately impacted by the pandemic.
Senate President Don Harmon, D-Oak Park, called the federal loans “a lifeline to keep our state and our economy afloat” during the pandemic.
“That our economy has rebounded so strongly that we can now pay it off early is a testament to the resilience of the people and businesses of the great state of Illinois,” he said in the statement.
Capitol News Illinois is a nonprofit, nonpartisan news service covering state government and distributed to more than 400 newspapers statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
Local News
![NAZ 23 Sophomore Danni Scully of Nazareth is triple-teamed by Marist in a 53-42 victory in LaGrange Park on Jan. 19. Photo by Jeff Vorva](https://southwestregionalpublishing.com/wp-content/uploads/2022/01/NAZ-23-1024x883.jpg)
‘Grizzled’ sophomores help Naz beat Marist
Spread the loveBy Jeff Vorva Staff Writer Nazareth’s “grizzled veterans” have won 19 of their first 20 games. The Roadrunners’ were victorious in a big East Suburban Catholic Conference showdown with Marist, with two sophomores doing most of the damage in a 53-42 win in LaGrange Park on Jan. 19. Nazareth improved to 19-1, 4-0.…
![SANDBURG BOWLERS Sandburg’s boys bowling team is headed to state for the first time since 2017 after winning its own sectional on Saturday. Photo courtesy of Carl Sandburg](https://southwestregionalpublishing.com/wp-content/uploads/2022/01/SANDBURG-BOWLERS-e1642992845574.jpg)
Postseason Sports Report: Area stars ready for state bowling and dancing
Spread the loveBy Jeff Vorva Staff Writer The first two IHSA state tournaments for winter sports will take place this weekend, and an army of area athletes will be competing in both. The boys bowling and competitive dance championships will be held Friday and Saturday, with the bowlers heading to St. Clair Bowl in O’Fallon…
![STRUS Stagg coach Marty Strus gets ready to talk to his players during Friday night’s game against Andrew. Photo by Jeff Vorva](https://southwestregionalpublishing.com/wp-content/uploads/2022/01/STRUS-1024x681.jpg)
Strus tops former coach in Stagg’s win over Sandburg
Spread the loveBy Jeff Vorva Staff writer Marty Strus has nothing but good things to say about his former high school coach, John Daniels. “He’s meant a ton to me,” Strus said of the coach he faced off against last week when his Stagg Chargers took on Sandburg. “He meant a lot to me as…
![1 For 68 years the Palos Area Chamber of Commerce has remained actively involved in the everyday life of the Palos area, residents and business community. (Supplied photo)](https://southwestregionalpublishing.com/wp-content/uploads/2021/11/1-4-1024x768.jpg)
Palos Area Chamber dedicated to promoting area
Spread the loveBy Kelly White Dedicated to helping local area businesses strive is the Palos Area Chamber of Commerce. The chamber was formed in 1949 when a small group of merchants joined together for the purpose of advancing economic, industrial, professional, cultural, and civic welfare of the Palos Heights area. For 68 years, the Palos…
![PeggyZabicki Peggy Zabicki](https://southwestregionalpublishing.com/wp-content/uploads/2021/07/PeggyZabicki-1024x768.jpg)
We need real solutions to crime
Spread the loveBy Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place • (773) 504-9327 Crime and safety concerns are the number one topic of all the calls and texts I receive. It seems that many politicians offer no solutions except the usual lists of ways to keep safe. I think everyone knows about locking…
![MaryStanek Mary Stanek](https://southwestregionalpublishing.com/wp-content/uploads/2021/07/MaryStanek-1-768x1024.jpg)
Icy spill yielded plenty of good will
Spread the loveBy Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place • (773) 284-7394 Here is a giant shout out to our first responders in the community. On Jan. 9, when a sheet of ice descended on Chicago, I was walking the dog. Walking around Peck School was great.…
![joanhadac Joan Hadac](https://southwestregionalpublishing.com/wp-content/uploads/2021/06/joanhadac.jpg)
It’s a busy January in Gage Park
Spread the loveBy Joan Hadac Neighborhood correspondent at large Greetings, Gage Parkers! I’m pleased to be filling in this week for Karen Sala. It’s fun for me to report on Gage Park, the neighborhood where I lived for the first 26 years of my life. There’s always something happening in this big, exciting part of…
![kathyheadley2021 Kathy Headley](https://southwestregionalpublishing.com/wp-content/uploads/2021/07/kathyheadley2021-869x1024.jpg)
You can bank on good service here
Spread the loveBy Kathy Headley Your correspondent in Chicago Lawn and Marquette Manor 6610 S. Francisco • (773) 776-7778 In this world of corporate takeovers, it is kind of hard to feel safe in the hands of big business. First, we have to supply some of our personal information to the automated system. Then there’s…
![regional palos park police active shooter drill Palos Park police will hold an active shooter training session on January 30. (Supplied photo)](https://southwestregionalpublishing.com/wp-content/uploads/2022/01/regional-palos-park-police-active-shooter-drill-1024x768.jpg)
Palos Park police to hold active shooter drill
Spread the loveFrom staff reports Palos Park Police will fine tune their strategies for dealing with an active shooter to ensure the safety of both officers and citizens later this month. The end goal of the January 30 drlll is to test the department’s active shooter response plans and fine tune them. “Palos Park effective…
Neighbors
![CRRNH_NiegoStory_062624 Thanks to Niego Real Estate, block after block in Clearing and Garfield Ridge are decked out each year in red, white and blue. Residents are asked to volunteer to pick up flags and decorate their whole block—or even additional blocks. --Supplied photo](https://southwestregionalpublishing.com/wp-content/uploads/2024/06/CRRNH_NiegoStory_062624-768x1024.jpg)
Niego Real Estate salutes America again
Spread the love. Popular flag program underway . By Tim Hadac Clearing and Garfield Ridge residents who want to decorate their blocks in red, white and blue this Independence Day are encouraged to contact Niego Real Estate and reserve a supply of U.S. flags at no charge. The popular program to promote patriotism and community…
![dvn 6-24-24 Alan_Morales Alan Morales](https://southwestregionalpublishing.com/wp-content/uploads/2024/06/dvn-6-24-24-Alan_Morales.jpg)
Lyons Mental Health Commission pulls LeaderShop funding
Spread the loveExecutive director accused of harassment From staff reports The local nonprofit service community was jolted when nearly $300,000 in mental health funds was withdrawn by a Lyons Township agency from the Western Springs LeaderShop, a social service agency that has provided youth programs for nearly 40 years. The Lyons Township Mental Health Commission…
![SRP-IMAGE-Logo SRP-IMAGE-Logo](https://southwestregionalpublishing.com/wp-content/uploads/2021/05/SRP-IMAGE-Logo-1024x560.png)
Mount Carmel, Marist and Oak Lawn among 84 teams at Riverside-Brookfield shootout
Spread the loveBy Xavier Sanchez Correspondent High school boys basketball does not stop in March and pick back up in late autumn. For many players, playing hoops is a year-round commitment. AAU ball is a big reason for, that there are summer camps, shootouts or other events at most schools during the summer. The…
![PeggyZabicki Peggy Zabicki](https://southwestregionalpublishing.com/wp-content/uploads/2023/10/PeggyZabicki-1024x768.jpg)
Dog lovers to celebrate ‘Fur of July’
Spread the love. By Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place • (773) 504-9327 . I’m starting out with some fun news. The West Lawn Dog Park Advisory Council will be hosting a Fur of July Pet Parade on Saturday, June 29 from 10:30 a.m. to 12:30 p.m. at West Lawn…
![MaryStanek Mary Stanek](https://southwestregionalpublishing.com/wp-content/uploads/2023/10/MaryStanek-768x1024.jpg)
Fourth of July not happy for everyone
Spread the love. By Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place • (773) 517-7796 . Happy Fourth of July. Cannot believe I am already saying that, time sure goes. Hope it is safe and quiet for everyone and especially all of our house pets. For us its shutting…
![kathyheadley2021 Kathy Headley](https://southwestregionalpublishing.com/wp-content/uploads/2023/10/kathyheadley2021-869x1024.jpg)
St. Rita’s transformation is worth a look
Spread the love. Kathy Headley Your correspondent in Chicago Lawn and Marquette Manor 6610 S. Francisco • (773) 776-7778 . St. Rita of Cascia Church, 63rd and Fairfield, continues to undergo its transformation from the sunflowery/harvest golds and browns of the 1960s and 1970s to the calming pastels of the 2000s. Since the basilica-style church…
![NAEHER Alyssa Naeher clears a ball at North Carolina on June 23 in a 3-1 Red Stars loss. IMAGN photo](https://southwestregionalpublishing.com/wp-content/uploads/2024/06/NAEHER-1024x712.jpg)
Loss to Courage brings Red Stars’ winless streak to five games
Spread the loveBy Jeff Vorva Correspondent The Chicago Red Stars historic start to the season is all but forgotten. In the last five matches, the Red Stars have failed to win, with the latest setback being a 3-1 loss on the road to North Carolina on June 23 in an NWSL battle. The Red Stars…
![SRP-IMAGE-Logo SRP-IMAGE-Logo](https://southwestregionalpublishing.com/wp-content/uploads/2021/05/SRP-IMAGE-Logo-1024x560.png)
Summer League Basketball | Illinois powers compete at Riverside-Brookfield Shootout
Spread the loveBy Xavier Sanchez Correspondent School’s out for the summer, but high school athletes across Illinois are remaining active during the summer sports season. This includes basketball players, who can be found at camps, open gyms, camps and even weekend tournaments. Among the more high profile hoops action in the area was the Riverside-Brookfield…
![Dana RETTKE Dana Rettke, a graduate of Riverside-Brookfield High School, will play on the U.S. women's volleyball team at the upcoming Summer Olympic Games in Paris.](https://southwestregionalpublishing.com/wp-content/uploads/2024/06/RETTKE.jpg)
Dana Rettke and Ryan Murphy heading to Paris Summer Games
Spread the loveBy Jeff Vorva Correspondent Area fans of the Summer Olympics will have extra reasons to cheer athletes from the United States in the upcoming Paris Games. Dana Rettke of Riverside is a member of the U.S. women’s volleyball team and Palos Heights native Ryan Murphy will represent the country in swimming. Rettke, a…
![kathyheadley2021 Kathy Headley](https://southwestregionalpublishing.com/wp-content/uploads/2023/10/kathyheadley2021-869x1024.jpg)
Hope Church feeds the hungry at Marquette Park
Spread the love. Kathy Headley Your correspondent in Chicago Lawn and Marquette Manor 6610 S. Francisco • (773) 776-7778 . Last week on the way to our CAPS meeting at the Marquette Park Fieldhouse, I stopped in at the Tuesday Community Dinner hosted by Hope Church every week in the auditorium. Pastors Ben and Jordyn…